Facebook CFO Owns Over $200M in Options, Restricted Stock

Senior Editor

David Ebersman took the reins on Facebook’s initial public offering, and the CFO will own options and restricted stock worth more than $200 million when the stock begins trading tomorrow.

Facebook shares priced at $38 each late Thursday, at the top of its increased price range, and the stock is expected to begin trading Friday morning. Also late Thursday, insiders and employees began filing their share ownership filings with the Securities and Exchange Commission.

Bloomberg News

David Ebersman, chief financial officer of Facebook, center, holds options and restricted stock units that could be worth up to $472.3 million at its $38 IPO price.

Ebersman’s Form 3 shows he holds 4.5 million options to buy shares at $3.23 apiece, meaning his shares are at least $34.77 in the money assuming Facebook stock doesn’t fall below the offering price. The options began vesting in September 2010 and will be fully vested in September 2015.

He also holds nearly 1.2 million restricted stock units, which will vest between early 2015 and early 2019, subject to continued service, and ultimately can be converted into Facebook’s Class B common stock.

If Ebersman stays with Facebook, the 5.7 million shares the options and RSUs represent are worth $215.8 million at the IPO price.

Ebersman also has 6.75 million RSUs that are subject to both continued-service and liquidity-event vesting conditions, and as such aren’t considered reportable holdings under SEC rules. The liquidity condition will be satisfied six months after the IPO, but if held to vesting, are worth an additional $256.5 million at the IPO price, bringing the total to $472.3 million.

Chief Operating Officer Sheryl Sandberg, for her part, could eventually own stock worth $1.77 billion at the IPO price, according to her Form 3.

And Facebook founder and CEO Mark Zuckerberg holds a stake that is worth more than $20 billion at the IPO price, according to his Form 3 filing.

Nearly across the board, mid-market executives are hiring new employees, buying new technology solutions, acquiring businesses to reach new markets and preparing IPOs, according to a Deloitte survey of more than 500 mid-market executives. But companies are running up against a number of constraints as they seek to expand, particularly in acquiring and retaining skilled talent.